The video game giant GameStop lost 3 billion dollars in the stock market following its decision to purchase Bitcoins. Investors have shown doubts about this strategy, suspecting it may cover the company’s structural issues.
GameStop invests in Bitcoin
On March 26, 2025, GameStop announced its intention to use proceeds from a 1.3 billion-dollar convertible debt offering to purchase bitcoins. This announcement followed the proposal to build reserve assets in cryptocurrency, particularly in bitcoins and dollar-pegged stablecoins. Initially, investors welcomed the news, boosting GameStop’s stock by 12% on the day of the announcement. However, the following day, March 27, stocks fell nearly 24%, resulting in a loss of about 3 billion dollars in market capitalization.
Controversial strategic shift
GameStop's decision is part of a growing trend among public companies to integrate Bitcoin into their treasury, popularized by Strategy (formerly MicroStrategy). GameStop's board unanimously approved a new investment policy allowing Bitcoin and stablecoin acquisition. However, this strategic shift comes in an unstable macroeconomic context, including trade wars sparked by tariffs set by U.S. President Donald Trump. Bitcoin has experienced a 7% decline since the year's start, sitting around 87,000 dollars by March 27, 2025.
A risky bet for the future?
The cold reaction from the financial markets reveals major concerns: is GameStop hiding the flaws of its traditional business model behind the Bitcoin hype? This diversification into crypto, while bold, exposes the company to unpredictable crypto-market fluctuations. A significant drop in Bitcoin's price could substantially weaken GameStop's finances, which are already transforming after several years of uneven performance.
Despite significant interest and support from some investors, the indicated strategy shift in GameStop raises mixed feelings in the markets. As the video game sector evolves towards digital and perhaps decentralized models, only time will show if GameStop will achieve sustainable growth or if this will only exacerbate the uncertainties surrounding its business model.
